Swedish Telecom Operators To Merge In Challenge To Telia

Swedish mobile phone operator Tele2 said Wednesday it has agreed to take over internet broadband and cable provider Com Hem with a view to a merger, challenging the Scandinavian country's market leader Telia

Stockholm, (UrduPoint / Pakistan Point News - 10th Jan, 2018 ) :Swedish mobile phone operator Tele2 said Wednesday it has agreed to take over internet broadband and cable provider Com Hem with a view to a merger, challenging the Scandinavian country's market leader Telia.

"Enlarged Tele2 will be the second largest mobile telephony and fixed broadband provider in Sweden and the market leader in digital tv," Tele2 said in a statement. Current Com Hem shareholders will end up holding 26.9 percent in the merged company, called Nya Tele2, and receive 6.6 billion kronor ($806 million, 675 million Euros) in cash.

The offer values Com Hem at around 26.5 billion kronor, nearly 12 percent above its market capitalisation at the close of trading on Tuesday. Com Hem shares surged nearly nine percent on the Stockholm stock exchange in response to the announcement early Wednesday, while Tele 2 dropped by about one percent.

The link-up is to result in 900 million kronor in synergy savings over the next five years. Investment fund Kinnevik will become the main shareholder in the new company with 27.3 percent of shares and 41.9 percent of voting rights.